Power Finance Corporation (PFC) has announced the incorporation of a new wholly owned subsidiary under its arm, PFC Consulting Limited (PFCCL). The subsidiary, named Fatehgarh II Transmission Limited, has been established as a Special Purpose Vehicle (SPV) for the installation of two Synchronous Condensers (SynCon) units at the 765/400/220 kV Fatehgarh-II Power Station.
The creation of this SPV is part of PFC’s role as the ‘Bid Process Coordinator’ (BPC) for Independent Transmission Projects (ITPs), as designated by the Ministry of Power, Government of India. The BPC is responsible for selecting developers through a tariff-based competitive bidding process, which involves preparing project profiles and initiating necessary land acquisition and forest clearance processes.
The incorporation of Fatehgarh II Transmission Limited is a strategic move to facilitate various preparatory activities for the transmission projects. These activities include conducting surveys, preparing reports, and initiating land acquisition and forest clearance processes if required. The SPV will eventually be transferred to the successful bidder selected through the International Competitive Bidding Process under the Tariff Based Competitive Bidding Guidelines for Transmission Service.
The Central Electricity Authority (CEA), under the Ministry of Power, had earlier recommended PFCCL as the BPC for the installation of the SynCon units at Fatehgarh-II. This recommendation was made during the 33rd meeting of the National Committee on Transmission held on 16 September 2025, and was subsequently formalised through a notification in the Official Gazette on 30 October 2025.
The establishment of Fatehgarh II Transmission Limited marks a significant step in the development of the transmission scheme, which is expected to enhance the efficiency and stability of the power grid in the region. The successful bidder, once selected, will take over the project development from the SPV.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).